Directors’ National Insurance settings

The Directors National Insurance settings should be used for Company Directors only. See the HMRC guidance on directors NI.

In Payroll, search for the employee you want to view and select their record. On the Details tab, select NI Details. The NI Details screen shows National Insurance information that relates to the employee.

For employees who are not directors, don't enter any data in the Director’s National Insurance section.

Each of the director’s NI fields are explained below:

Employee is a Director

Select if employee is a company director and their NI should be calculated as per company director NI rules.

Directors Calculation Method

Choose from:

Director Annual Method – The standard method of calculating NI for company directors. The NI iscalculated cumulatively over an annual earnings period.

Director Alternative Method - National Insurance is calculated on a per pay period basis i.e.. each month, with a cumulative calculation in the last period of the year, as per HMRC guidelines

Director has an Appropriate Personal Pension

Select if the employer has an appropriate personal pension.

Director on Pro-Rata

Select if the employee became a director after the start of the current tax year (6 April).

Director’s Pro-Rate Less Weeks

If Director on Pro-Rata is selected and the employee has become a director since the start of the current tax year, enter the number of weeks the employee was not a director in the tax year.

Director Appointed This Period

Automatically set to Yes if Employee is a Director and Director Pro-Rate Less Weeks are selected. This feeds through to the FPS and reports the number of less weeks.

If an employee is set to be paid as a director for NI purposes, a separate NI record is kept for their NI categories paid as a director. To view, on the Details tab, select NI Records.